UAE Industrial Sector Sees 62% GDP Growth in 2024
The UAE’s industrial sector has demonstrated remarkable growth, contributing Dh190 billion (approximately USD 51.74 billion) to the nation’s gross domestic product (GDP) in 2024. This marks a substantial 62% increase since 2020, reflecting the country’s ongoing commitment to economic diversification and innovation.
Industrial Growth and Export Targets
Dr. Sultan Al Jaber, the Minister of Industry and Advanced Technology, announced these figures during the UAE International Media Forum and the UAE Government Annual Meetings held in Abu Dhabi. He highlighted that industrial exports reached Dh197 billion in 2024, moving the UAE closer to its ambitious goal of achieving Dh300 billion in exports by 2031.
Dr. Al Jaber emphasized the importance of adaptability in a rapidly changing global landscape. He stated, “Transformation and innovation are essential for success,” urging the need for the UAE to stay ahead of global trends. The government plans to focus on developing new industries, particularly in sectors such as renewable energy, semiconductor manufacturing, artificial intelligence, battery production, and electric vehicles.
Investment in Artificial Intelligence
Omar Al Olama, the Minister of State for Artificial Intelligence, Digital Economy, and Remote Work Applications, reinforced the UAE’s commitment to nurturing talent in artificial intelligence. He reported a significant increase in the number of computer programmers in the UAE, which has risen by 376.9% since 2020, totaling over 450,000 professionals. This positions the UAE among the top ten global destinations for AI talent, according to the Boston Consulting Group’s Global Talent Index.
Al Olama also revealed that the UAE has invested AED 543 billion in artificial intelligence since 2024. Future initiatives include launching a digital academy and a dedicated jobs platform aimed at facilitating AI-related employment opportunities within the country.
FAQs
What is the GDP contribution of the UAE’s industrial sector in 2024?
The industrial sector contributed Dh190 billion (USD 51.74 billion) to the UAE’s GDP in 2024, marking a 62% increase since 2020.
What are the UAE’s export targets for the industrial sector?
The UAE aims to achieve Dh300 billion in industrial exports by 2031, with exports reaching Dh197 billion in 2024.
How has the UAE invested in artificial intelligence?
Since 2024, the UAE has invested AED 543 billion in artificial intelligence, focusing on nurturing talent and developing new technologies.
Conclusion
The UAE’s industrial sector is on a robust growth trajectory, significantly contributing to the national economy and positioning itself for future advancements. With ongoing investments in technology and talent development, the country is well-equipped to meet its ambitious goals in the coming years.
The growth of the UAE’s industrial sector is part of a broader strategy to reduce the economy’s reliance on oil revenues, which have historically dominated the national income. The government has implemented various initiatives aimed at fostering innovation and attracting foreign direct investment. These efforts include the establishment of free trade zones and incentives for businesses to invest in advanced manufacturing and technology sectors. As a result, the UAE is becoming an increasingly attractive destination for multinational corporations looking to expand their operations in the Middle East.
In addition to the focus on artificial intelligence and advanced manufacturing, the UAE is also investing in sustainable practices within its industrial sector. The government is promoting green technologies and renewable energy sources, aligning with global sustainability goals. Initiatives such as the UAE Energy Strategy 2050 aim to increase the contribution of clean energy to the overall energy mix, which is expected to further enhance the competitiveness of the industrial sector while addressing environmental concerns.
The UAE’s strategic location, coupled with its modern infrastructure and business-friendly environment, positions it as a key player in the global supply chain. As the nation continues to diversify its economy, the industrial sector is expected to play a pivotal role in driving economic growth and creating job opportunities for its growing population. This ongoing transformation reflects the UAE’s vision to become a leader in innovation and technology on the world stage.
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